The approval isn't your budget
In my experience, buyers are more often than not approved for a bigger mortgage than they'd want to carry each month. The approval tells you what a lender will allow. It doesn't tell you what fits your life.
We're not your financial planner, and we don't need to know every detail of your finances. That's your mortgage broker's job, and a good one will go deep. We ask for the information we need to guide the search, and we work within the range you're comfortable with.
“If I hadn’t had my initial conversation with Christian, we wouldn’t have even known we did have the option to buy with our budget and newcomer-to-Canada status.” — T. Harney, Google review
Your appetite for renovation is part of the budget
The price is only half the question. The other half is how much work you're willing to take on. Early in the search, we talk it through:
- Are you open to renovating at all?
- If so, cosmetic only, like paint, floors and fixtures, or something more invasive, like a kitchen, a bathroom or moving walls?
- Or does it need to be move-in ready?
There's no right answer, only your comfort level and your tolerance for risk. Sometimes it turns out that a renovation project simply isn't in the cards, and that changes which houses are worth seeing.
Know what's coming before you buy
Our goal is simple: nothing should catch you off guard. That's why we attend showings with you and talk through what we see as we go.
By the time we've walked the house together and read the inspection report, you should have a working sense of what it will need immediately or over the next 2-3 years: a roof nearing the end of its life, an older furnace, a basement that needs attention. It's a rough picture, not a quote. But those future costs belong in the decision alongside the purchase price, because they're part of what the house really costs.
A cushion for the unexpected
I suggest setting aside roughly $5,000 to $10,000 for a condo, or $10,000 to $15,000 for a house, for the costs nobody plans for: replacing every lock after you move in, small repairs, a new toilet bowl for a fresh start, the adjustments every new home needs. You'll use it. Better to have it ready than to put it on a credit card in your first month.
The $1.5 million line
Since December 15, 2024, the insured mortgage cap has been $1.5 million. If the purchase price is under $1.5 million, you can buy with less than 20% down, with a minimum of 5% on the first $500,000 and 10% on the rest, plus mortgage default insurance. At $1.5 million or more, you need at least 20% down.
In the East End, that cap has become a clear dividing line. By our count, almost 70% of freehold sales in the core East End in the first half of 2026 were under $1.5 million. Below the line, far more buyers can compete, including those with smaller down payments. Above it, the pool narrows.
Source: Porchlight analysis of TRREB MLS data for districts E01, E02 and E03, freehold sales, January 1 to June 30, 2026.
Which side of the line you're shopping on shapes your competition, your down payment and your strategy. It's worth knowing before the search starts. How much to put down, and whether insurance makes sense for you, is a conversation for your mortgage broker.
Frequently asked questions
Should I buy at the top of my mortgage approval? Usually not. The approval is the lender's limit, not your budget. Start from the monthly payment you're comfortable with, then add what the house will need over the next few years.
How much should I set aside beyond the down payment and closing costs? Roughly $5,000 to $10,000 for a condo, or $10,000 to $15,000 for a house, for the unexpected: new locks, small repairs and the adjustments every new home needs. Older homes may need more.
What is the insured mortgage limit in Canada? Since December 15, 2024, the purchase price must be under $1.5 million. Below that, the minimum down payment is 5% of the first $500,000 and 10% of the remainder, with mortgage default insurance. At $1.5 million or more, you need at least 20% down.
How do I estimate what an older house will cost me after I buy it? Look at it with someone who reads houses for a living, and read the inspection report closely. Together they should give you a rough picture of what's coming over the next few years: roof, furnace, windows, you name it. But even the most thorough inspection isn't a guarantee. Owning a home comes with surprises, and some of them come with a price tag: a sudden leak, a drain backup, a dryer that stops working. You get the idea.
